Piped Natural Gas for Steel Mills and Metal Processing
A steel mill is the most energy-intensive customer on any gas network. Scrap-based mini-mills run induction furnaces on self-generated power, and rolling mills burn liquid fuel in reheat furnaces around the clock. Both loads move to piped natural gas, and together they are the single largest saving available to a Nigerian steel producer. Steel producers are among the anchor customers behind the audited demand at our flagship Ibusa area.
Where the energy goes in a steel and metals plant
Steel plants in Nigeria are mostly scrap-fed mini-mills: an induction or arc furnace melts scrap into billets, and a rolling mill reheats the billets and rolls them into rebar, wire rod or sections. Energy enters the plant in two places:
- Captive power for melting. Induction furnaces are electric, so the melt shop runs on the plant's own generation. On diesel or HFO this is the largest cost line in the business. Gas engines or gas turbines running on piped gas cut the fuel cost of every tonne melted.
- Reheat furnaces. Billets are reheated to rolling temperature in furnaces fired on LPFO, diesel or HFO. Swapping to natural gas burners removes fuel heating, storage, sludge and soot, and gives cleaner, more controllable flame.
- Heat treatment and finishing. Annealing, normalising and galvanising lines, and pickling-bath heating, all fire directly on gas.
- Ancillary plant. Ladle and tundish preheaters, cutting torches and plant boilers all move to the same metered supply.
What changes, load by load
Most of the plant stays exactly as it is. The fuel changes, and with it the burner or the engine that uses it. Diesel today is around ₦1,800 per litre at the pump before transport, storage and losses.
| Load | Today | On piped gas | Change needed |
|---|---|---|---|
| Melt shop (induction furnaces) | Diesel or HFO generators | Gas engines or turbines on piped gas | New gas gensets, or bi-fuel conversion of existing diesel sets |
| Reheat furnace | LPFO, diesel or HFO burners | Natural gas burners | Burner and control swap, same furnace body |
| Heat treatment lines | LPFO or diesel | Natural gas | Burner swap |
| Preheaters and torches | LPG or diesel | Natural gas | Piped to point of use |
How much gas a plant like yours needs
Steel is where the MMSCFD figures on this site come from. A rule of thumb: 1 MW of continuous gas-engine generation needs roughly 0.2 to 0.25 MMSCFD, so a melt shop drawing 10 MW needs about 2 to 2.5 MMSCFD on power alone. A rolling-mill reheat furnace at 10 tonnes per hour adds in the region of 0.3 to 0.5 MMSCFD depending on its age and insulation. A mid-sized integrated mini-mill therefore sits between 2 and 4 MMSCFD, which is why our Ibusa flagship area, with audited demand in excess of 4 MMSCFD across anchor customers, has been built around industrial loads of this size.
What piped gas changes for steel and metals
Cost per tonne
Fuel is the largest controllable cost in a mini-mill. A 40 to 55 percent cut in fuel cost per megawatt hour flows straight into cost per tonne of billet.
Uptime
A furnace that stops because a tanker did not arrive loses a heat. Piped gas has no delivery schedule and no storage to run dry.
Cleaner melt shop
No LPFO sludge, no soot on the shop floor, lower engine maintenance and longer intervals between overhauls.
Export readiness
Lower-emission production and a documented fuel switch help with the environmental due diligence that export buyers and lenders now ask for.
Distribution areas for this sector
Our flagship Ibusa and Asaba corridor area in Delta State already counts steel producers among its anchor customers, and the Awka area in Anambra State and the planned AMIC industrial city are sized for heavy industry. Gasland Horizon is the exclusive franchise holder for piped natural gas distribution in each of these zones, in joint venture with NNPC Gas Marketing Limited. See all distribution areas.
Questions from steel and metals operators
The furnace itself stays electric. What changes is the power that feeds it: gas engines or gas turbines running on piped natural gas replace diesel or HFO generation, which is where the fuel saving comes from. Reheat and heat-treatment furnaces convert directly to gas burners.
Roughly 0.2 to 0.25 MMSCFD per megawatt of continuous generation, plus 0.3 to 0.5 MMSCFD for a reheat furnace running at around 10 tonnes per hour. A mid-sized mini-mill typically needs 2 to 4 MMSCFD. We size the connection from your Energy Data Form rather than from averages.
Not necessarily. Existing diesel sets can be converted to bi-fuel operation, running mostly on gas with a diesel pilot, which keeps the capital cost down. For a new melt shop, dedicated gas engines give the lowest running cost. The savings assessment compares both routes for your plant.
Other sectors: all manufacturing, power generation and IPPs, industrial parks, hotels and commercial.
Ready to cut your energy costs?
Complete the Energy Data Form or call +234 802 292 2952. We reply within three business days.